Eurozone growth lower than expected, Europe's 'locomotive' national economy stagnates

Official data released today showed that the Eurozone economy grew by just 0.1% in the second quarter of 2023, lower than previously estimated.

Kinh tế Eurozone tăng trưởng thấp hơn dự kiến, quốc gia ‘đầu tàu’ châu Âu trì trệ

Germany, Europe's leading economy, fell into recession earlier this year and growth stagnated in the second quarter of 2023. Photo: Consumers choose to buy goods at a supermarket in Frankfurt, Germany. (Source: THX)

The European Union's (EU) European statistical agency Eurostat previously forecast 0.3% growth in the second quarter of 2023 in countries using the Euro.

“The European economy is generally sluggish, weighed down by high interest rates, rising energy prices and the global recession,” said Charlotte de Montpellier, an analyst at ING bank.

The European Central Bank (ECB) has been steadily raising interest rates in an effort to curb rising inflation.

Germany - Europe's leading economy, fell into recession earlier this year and growth stagnated in the second quarter of 2023.

Germany's gross domestic product (GDP) did not grow in the second quarter of 2023, after consecutive declines of 0.5% and 0.3% in the previous quarters. Experts fear that Europe's manufacturing powerhouse could become a drag on the Eurozone economy this year.

Eurostat kept its growth estimate for the 27-nation European Union (EU) unchanged at zero in the second quarter of 2023 and a 0.2% increase in the first quarter of 2023.

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